A federal court in New York has ruled that a racketeering and fraud case against a trio of connected corporations can go ahead primarily based on a truck driver’s claims following he failed a drug test following employing a single of the firms’ CBD solutions.
Whilst the court threw out some claims this month, it mentioned the case, initially filed in 2015 by trucker Douglas Horn, can proceed against Health-related Marijuana, Inc., Dixie Holdings, LLC a/k/a Dixie Elixirs, and Red Dice Holdings.
Failed test for THC
Horn claims in his lawsuit that the corporations advertised their solutions as THC-free of charge. He was terminated by New York-primarily based Enterprise Transportation Organization following testing good for THC he claims was in Dixie Elixir CBD.
The presence of THC in the solution was confirmed by two laboratories, according to the suit brought by Horn, who is identified in court documents as a former “professional more than-the-road hazmat industrial truck driver.”
Claims below RICO
Horn claims in the suit that by “unequivocally and continually representing on their web sites, press releases and marketing media that their solutions include no illegal THC,” when they do in reality include THC, that the corporations are “misleading the public at large” concerning the advertising of their solutions.
Horn claims the firms’ advertising is “unfair, illegal, false, deceptive and/or misleading,” below federal recommendations. These claims now move forward as do additional claims below the federal Racketeer Influenced and Corrupt Organizations (RICO) Act — typically cited in connection with organized crime prosecutions.